Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
⭐ Merited by JayJuanGee (1)
It seems that the situation is getting from bad to worse by each hour. This is not a normal trading, so to speak of any support line is pointless. The support is when the last bitcoin of Greyscale will be sold. I won't be surprised if we see covid like apocalyptic dump. Too bad I don't have any fiat left to buy moar. I guess the plan is to keep the rate 1.5% until the BTC outflows stop. And then lower it to 0.3%. But people are not so stupid to return to Greyscale knowing that they will raise the rate again. So, instead of leading the parade to 100K, Greyscale chose to be the new far more ominous MtGox. Well, it seems that we have to wait a bit longer to see 100K. Honey badger doesn't care.
Doesn't make sense, hodlers are not the problem here. If they don't like paying high fees with GBTC they would just reshuffle into a cheaper ETF but not sodl. Problem is it appears that GBTC had many speculators/arbitrageurs who couldn't care less for the underlying which are now just cashing out, thus the overall net outflows from the ETFs yesterday. GBTC knew their customers, those arbitrageurs were looking to close their position and exit and not for cheaper fees, so it makes sense to charge them 1,5% as they wait for their exit. GBTC know that they're done, they can't compete for new capital with Fidelity and Blackrock even if they drop their fees to 0,3% Initially I thought that GBTC outflows were causing the discount, but now i'm rethinking my cause/effect relationship, and now think that GBTC discount is the one limiting the outflows to about $500MM/day markets can't handle more than that without discount dropping to over 100 basis points.